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LPL Financial LPLA witnessed a rise in total brokerage and advisory assets in January 2025. The metric was $1.81 trillion, which grew 4.1% from the prior month and 33% year over year.
LPLA’s Performance Breakdown
Of LPLA’s total assets, brokerage assets were $819.4 billion and advisory assets amounted to $992.4 billion. Brokerage assets jumped 4.6% from December 2024 and 31.9% year over year. Advisory assets were up 3.7% from the previous month and 34% from January 2024.
Total net new assets (NNAs) were $34.1 billion in January. It included $0.1 billion of acquired NNAs from Liquidity & Succession activity. Total organic NNAs were $34 billion, including $13.5 billion of assets from Prudential Advisors (“Prudential”) and $15.2 billion from Wintrust Investments, LLC (“Wintrust”) that were onboarded in January, and $0.2 billion off-boarded assets as part of the previously disclosed planned separation from misaligned large offices of supervisory jurisdiction. Excluding these assets, organic NNAs were $5.1 billion.
The company reported $52.2 billion of total client cash balance in January, down 5.3% from the prior month but up 11.3% from January 2024. Of the total balance, $36.2 billion was insured cash, $10 billion was deposit cash, while the remaining was money-market sweep and client cash balance.
Our Take on LPLA Stock
LPL Financial’s planned buyout of Investment Center, the recent acquisition of Atria Wealth, solid advisor productivity and recruiting efforts will aid advisory revenues. The company is expected to keep expanding through strategic acquisitions, which will help diversify operations. However, uncertainty about the performance of the capital markets and substantial goodwill on the balance sheet are headwinds.
In the past three months, LPLA’s shares have risen 16.1%, outperforming the industry’s growth of 8%.
Image Source: Zacks Investment Research
Currently, LPL Financial carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of LPLA’s Peers in January
Charles Schwab SCHW released its monthly activity report for January 2025. The company’s core net new assets of $30.6 billion declined from the previous month’s $61.4 billion but surged substantially from $17.2 billion recorded in the year-ago month.
SCHW’s total client assets in January 2025 were $10.33 trillion, up 2.3% from December 2024 and 20.7% from the January 2024 level. Client assets receiving ongoing advisory services were $5.20 trillion, up 2.6% from the prior month and 16% from the year-ago period.
Interactive Brokers Group, Inc. IBKR released the Electronic Brokerage segment’s performance metrics for January 2025. The segment deals with clearance and settlement of trades for individual and institutional clients globally. It reported a rise in client Daily Average Revenue Trades (DARTs) from a year ago.
IBKR’s total client DARTs in January were 3,473,000, which increased 6.3% from December 2024 and 48.4% from the January 2024 level.